Those looking to purchase a home commonly ask, ‘Is this a good investment?’.
The Luxury Living team wants to ensure that you answer ‘yes’ to this question by understanding what makes a good investment.
We want to help you find a home that is a worthwhile investment and provide insight into condo vs. townhouse resale value.
Key Things to Know About Resale for Different Property Types
The resale value is what a buyer in the market will pay for your property. When it comes to re-selling a condo or townhouse, there a few principles to note.
In general, condos tend to sell much quicker than single-family homes, even in a down-market, due to lower costs.
It’s also critical to abide by the homeowner association’s rules and guidelines when reselling a condo. Associations may place limits on who the condo may be sold to, buyer pre-approval, and where you place for-sale signs.
Setting your home apart from the other similar surrounding condo units and communities involves highlighting your condo’s assets and neighborhood amenities. Determining a competitive selling point is crucial to the success of your resale.
The process of reselling a townhome closely mirrors that of a condo. However, sellers have found that townhomes tend to have lower resale values. Not only can it be more challenging to fill a townhome community, but it is often harder to obtain financing for townhomes. This is due to the increased liability of owning both the land and the physical structure.
On the positive side, determining a townhome’s fair selling price is relatively easy because of the many similar properties in the community.
What Impacts Resale Value
Many factors can impact the resale value of a property.
One of the best indicators of a home’s value is the sale prices of similar properties in the neighborhood that have recently sold, referred to as neighborhood comps. Real estate experts will compare these neighborhood comps to assess the value of your property.
Your property’s location is one of the key determining factors to your property’s value at the time of re-sale. This is why it’s wise to invest in an area with anticipated market growth.
Added improvements and upgrades to a property can significantly increase the resale value. Some of the projects that make the most significant difference include bathroom renovations, hardwood floors, kitchen remodel, new appliances, and added storage. All of the upgrades warrant a bump in your property’s price.
Purchasing a Property
Whether you’re moving to Chicago for the first time or are looking to move to a new home, LLCR can help.
We have a team of experienced and licensed brokers who can walk you through the home-buying process. They can help find the property that is best for you and ensure that you keep essential considerations in mind, including condo vs. townhouse resale value.
Start the hunt for your dream home today!